Self-Managed Super Options

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Is a Self-Managed Super Fund right for you?

Having the power to decide how you'd like your retirement nest egg invested is one of the great benefits of a Self-Managed Superannuation Fund (SMSF). The popularity of SMSFs with professionals, small business owners and those with higher super balances is due to four key reasons - control, tax advantages, flexibility and cost savings.

Benefits of a Self-Managed Super Fund

Control

SMSFs offer full control over the investments your fund makes. As a trustee, you’ll determine the investment strategy of the fund and select which assets to acquire. You may be able to choose investments such as commodities, artworks and collectables, in addition to standard options such as shares, managed trusts and property.

A possible advantage for business owners is the potential for the SMSF to purchase their business property and then lease that property back to the business.

You also have greater control over the distribution of superannuation death benefits. While super laws govern who can receive a death benefit, SMSFs have some flexibility over how the benefit is paid and you can exercise discretion if a binding death nomination has not been lodged. You can ensure the death benefits are paid in accordance with the wishes of your fund’s members, as well as make sure the benefit is paid in the most tax effective way.

Tax advantages

An example of tax advantages with a SMSF is that you may elect to invest largely in companies that pay a high level of franked dividend and then use these franking credits to offset the tax payable on other investment income or on concessional contributions.

Another significant advantage of SMSFs is the tax treatment on the transfer of assets in the accumulation phase to assets supporting the payment of a pension. When this occurs, there is no capital gains tax payable on the transfer of the asset as there is no change of legal or beneficial ownership. While the tax treatment above is not unique to SMSFs, it’s very difficult for this to occur in other types of funds as the asset is not individually linked to the member.

Flexibility

SMSFs can potentially be more flexible than other super funds, allowing you to implement very personal and tailored investment strategies. You can also implement more complex retirement planning strategies, such as maintaining both accumulation and pension accounts for the same member or running multiple pension accounts for the same member.

Your SMSF may also be able to adapt to any legislative or taxation changes earlier and more specifically than a large retail or industry fund, which needs to consider the interests of possibly thousands of members.

Cost savings

There are, potentially, no investment manager fees, no entry or exit fees, no financial adviser fees, and no weekly administration fees. There are, of course, costs involved in running your own SMSF and not all trustees will save money.

What you’ll need to consider

SMSFs could be more expensive than an existing superannuation fund. Also, importantly, the investment performance may not be as strong as it could be with a professional investment manager.

Plus, you’ll be taking on considerable legal obligations and could find yourself spending many hours on administrative and compliance tasks.

One further caveat – if you are planning to live overseas for an extended period of time, then you may be well advised not to establish a SMSF until you return to Australia, as there are residency requirements to meet.

Banking options for your SMSF

At BOQ, we understand a wide range of banking options are necessary to effectively manage your super. That's why we offer a range of competitive products tailored to suit your Self-Managed Super needs.

Transaction Accounts

Everyday Business Account

A full service, cost-effective transaction account that can be used as a centralised hub to facilitate payments for your self-managed super fund.*

Bank Feeds

Saving and Investing

Superannuation Savings Account

An online savings account designed specifically for the cash component of a self-managed superannuation fund. It offers a competitive at-call interest rate on accounts with at least $10,000, and includes unlimited direct debit functionality.

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*The Everyday Business Account is subject to the Bank's Fair use Policy. Under this policy, greater than 300 transactions per month will be considered excessive or unreasonable use of the account, and BOQ may convert to a fee-charging account.

#Term Life Insurance is issued by St Andrew's Life Insurance Pty Ltd ABN 98 105 176 243, AFLS 281731 (SALI). BOQ receives a commission of up to 20% of the insurance premiums (excluding stamp duty and GST) paid by customers referred to SALI. BOQ cannot provide you with any advice about this product and only refers customers to SALI.

BOQ will not provide you with advice in relation to the establishment, operation and structure of your self managed superannuation fund (Super Fund). Nor will BOQ provide you with advice in relation to the investment strategy of your Super Fund. You should seek independent advice from a qualified professional on these matters.

Fees and charges are payable. Valuation fees are additional, as are the legal fees associated with verifying that the structure of a Super Fund is compliant with the Superannuation Industry (Supervision) Act. BOQ's standard credit assessment criteria apply.

This information is for general information purposes only. Fees and charges are payable. Full terms and conditions are available at any Bank of Queensland branch. These may be varied, or new terms and conditions introduced in the future. The content on these pages is for information only and is not an offer by the Bank to provide the products and services. This website contains general advice. This advice has been prepared without taking account of your objectives, financial situation or needs. You should consider the appropriateness of any advice before acting on it. You should obtain and consider the relevant Product Disclosure Statement (PDS), terms and conditions and Guide to Fees and Charges for the product before making any decision about whether to acquire or continue to hold it. PDSs and Financial Services Guides (FSG) for commercial general insurance can be obtained from GIO. Copies of all other documents can be obtained from any BOQ branch or from this website.